NO.PZ2016021705000030
问题如下：
Happy Resorts Company currently has 1.2 million common shares of stock outstanding and the stock has a beta of 2.2. It also has $10 million face value of bonds that have five years remaining to maturity and 8 percent coupon with semi-annual payments, and are priced to yield 13.65 percent. If Happy issues up to $2.5 million of new bonds, the bonds will be priced at par and have a yield of 13.65 percent; if it issues bonds beyond $2.5 million, the expected yield on the entire issuance will be 16 percent. Happy has learned that it can issue new common stock at $10 a share. The current risk-free rate of interest is 3 percent and the expected market return is 10 percent. Happy's marginal tax rate is 30 percent. If Happy raises $7.5 million of new capital while maintaining the same debt-to-equity ratio, its weighted average cost of capital is closest to:
选项：
A.14.5 percent.
B.15.5 percent.
C.16.5 percent.
解释：
B is correct.
Capital structure:Market value of debt: FV = $10,000,000, PMT = $400,000, N = 10,I/YR = 13.65%/2. Solving for PV gives the answer $7,999,688.Market value of equity: 1.2 million shares outstanding at $10 = $12,000,000
To raise $7.5 million of new capital while maintaining the same capital structure, the company would issue $7.5 million × 40% = $3.0 million in bonds, which results in a before-tax rate of 16 percent.
rd(1 − t) = 0.16(1 − 0.3) = 0.112 or 11.2%
re = 0.03 + 2.2 (0.10 − 0.03) = 0.184 or 18.4%
WACC = [0.40(0.112)] + [0.6(0.184)] = 0.0448 + 0.1104 = 0.1552 or 15.52%
Happy Resorts Company currently has 1.2 million common shares of stock outstanding and the stock has a beta of 2.2. It also has $10 million face value of bonds that have five years remaining to maturity and 8 percent coupon with semi-annual payments, and are priced to yield 13.65 percent. If Happy issues up to $2.5 million of new bonds, the bonds will be priced at par and have a yield of 13.65 percent; if it issues bonds beyond $2.5 million, the expected yield on the entire issuance will be 16 percent. Happy has learned that it can issue new common stock at $10 a share. The current risk-free rate of interest is 3 percent and the expected market return is 10 percent. Happy's marginal tax rate is 30 percent. If Happy raises $7.5 million of new capital while maintaining the same debt-to-equity ratio, its weighted average cost of capital is closest to:
您的回答A, 正确答案是: B
A
不正确14.5 percent.
B
15.5 percent.
C
16.5 percent.
To raise $7.5 million of new capital while maintaining the same capital structure, the company would issue $7.5 million × 40% = $3.0 million in bonds, which results in a before-tax rate of 16 percent.
rd(1 − t) = 0.16(1 − 0.3) = 0.112 or 11.2%
re = 0.03 + 2.2 (0.10 − 0.03) = 0.184 or 18.4%
WACC = [0.40(0.112)] + [0.6(0.184)] = 0.0448 + 0.1104 = 0.1552 or 15.52%
问题1
7,999,688我算出来了，1.2millions of common shares of stock是指市值还是股票数量，我看老师回答里面有人问，老师回答是股票数量，但这里奇怪，Happy has learned that it can issue new common stock at $10 a share，这里应该用的是债券和股票的market value对吗?，发行价10元是primary market，二级市场可高可低，一级市场的股票价格算market value of stock price吗？
问题2：我没看懂后面40% 60%，股债比应该是7999688/12000000把？这个结果是0.66，和40% 60%没关系？这数字哪里来的？
问题3：If Happy raises $7.5 million of new capital while maintaining the same debt-to-equity ratio。那就是股债比和之前一样是0.66？ new capital指的是股票+债券对吗？因为这里没有明确说raise 啥
问题4：16%不是entire issuance吗？应该是债加股才对？这里答案怎么用到债券上了？
谢谢，请讲下求出7999688以后的解题思路
